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Procurement User Group (PUG)January 2014

Nebraska State Purchasing Bureau

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Opening RemarksE-Mail Blasts and How to Receive

IntroductionsStaff

Procurement Basics RFP Process and Planning New SPB Website Report – Open Contract Lines

AGENDA

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Procurement Basics – Commodity & Service

Nebraska State Purchasing Bureau

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SPB ContactsRita Kucera, Services 402.471.4194

Kate Severin, Commodities 402.471.4367Brenda Pape, State Procurement Manager

402.471.0971 SPB Website ResourcesThe Unrestricted Open Market Authority Letter should be your new best friend Contract List on SPB website – start here first

Resources

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State Purchasing Bureau is now divided into two teams: Services and IT (IT includes IT commodities and

service) Commodities Reduces confusion and allows more specialization

among the buyers and teams As requisitions come in, Supervisor(s) review for

appropriate documentation and assign to Buyer(s)

Procurement Team Structure

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Thorough communication with agencies during the procurement process

Enhanced tools for agencies and vendors –including updated website, forms and training guides

Committed to maximum competition to ensure the best value for state tax dollars

Mutual accountability and responsibility between SPB and agencies

State Purchasing Bureau Goals

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COMMODITY PROCUREMENT UPDATES

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Julie Dabydeen, Buyer Teresa Fleming, Buyer Dianna Gilliland, Buyer Jennifer Crouse, Buyer Annette Walton, Buyer

Christie Kelly, BuyerBitsy Longan, Staff Assistant

Charla Peterson, Staff Assistant

Kate Severin, Supervisor

Brenda Pape, State Procurement Manager

Commodity Team

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Proof of authorization to engage in business within the State of Nebraska required prior to award for commodity contracts or formally posted ITB’s for one-time purchase (73-101.01)Ensures legitimacy of vendors receiving awards, typically done via Secretary

of State registration Commodity Specification template changes –

includes Secretary of State language and formatting changes

Formatting changes (Yes/No/No & Provide Alternative) offer more clarity to bidders; new table structure easier to format

New in Commodity Procurement

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Preference –Invitation to Bid updated to include language from 73-107 to allow a Resident disabled veteran or a business located within a designated enterprise zone to claim preference if all other factors are equal, based on documentation provided

New statute from 2013 legislative session Core & Catalog –ensures flexibility for agencies,

as needs change SPB cannot add items to a contract that were not part of the competitive bid

New in Commodity Procurement

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Upon requisition arrival in SPB, team Supervisor reviews file and attached documentation; Supervisor may request additional information from the Agency before assigning to a Buyer

Requisition attachments may include:Specifications (for contract or formal bid)

Vendor List (for contract or formal bid)Quotes already received (for Direct Purchase Authority)

Justification Memo (Sole Source or Restrictive)Explanation Memo (Used Equipment)

Text attachments explaining any other needs, concerns or factors that will affect the agency

Commodity Procurement Processing Steps

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Upon assignment of requisition, SPB Buyer should send a “heads up” note to the agency contact

Enhances communication with agency SPB is working contract renewals a minimum of six (6)

months prior to expiration (both commodity and service contracts)

Enhances planning at the SPB and agency level

Commodity Procurement Processing Steps

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Since SPB is working contract renewals a minimum of six (6) months prior to expiration:

If an existing contract is out of renewal options, agencies – please be prepared to begin planning the procurement calendar a minimum of six (6) months prior

to expiration This allows time for measured review of specifications

for rebid and ensures that pre-contract award documentation may be collected in advance of desired start date

Planning Procurement Projects

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Work backward from the desired start date of the contract or purchase order issuance

SPB requires a minimum of 45 business days to review and post an ITB from date of requisition receipt

Bid process – minimum 3 weeks for ITBs Please ensure that all agency internal

stakeholders have reviewed the planned procurement project and given their input before submitting requisition to SPB

Planning Procurement Projects

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SPB must obtain “proof of authorization to engage in business” from awarded vendor

Bonds, COI or other requirements may require receipt

Legal review if bidder has taken exception(s) to standard terms and conditions or has included a Licensing Agreement

Vendor addition to PFC Address Book, if necessary

After Receiving Agency Recommendation for Formal Competitive Bids

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Direct Purchase Authority is only available on procurements between$10,000 to $24,999.99.

SPB cannot, by statute, grant DPA for procurements at or above $25,000 Please include copies of all quotes/bids received with

the requisition If it was not possible to receive three (3) bids, please

note. Include a justification memo if necessary. Used equipment within this price range should be

accompanied by an explanation memo Document for the file and possible future review

Direct Purchase Authority (DPA) Process ($10,000 to $24,999.99)

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Requisitions for products with GSA-Like pricing are to be accompanied by (1) a quote that calls out the GSA-Like pricing, (2)a copy of the cover sheet of the associated GSA contract and (3)copies of the specific contract pages with the item(s) and prices listed

The vendor should be able to supply this to the agency

GSA-Like Pricing ($10,000 or Over)

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Agency is responsible for providing the technical specifications to SPB

“We’ve always done it that way” – let’s explore how we can improve or update the specifications

Please work with SPB as we ask questions. Our goal is the best product at the best price for your needs

We are all are stewards of the public’s interest – maximum competition and transparency is the goal

Formal ($25,000 or Over)One-Time Purchase Specifications

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Agency is responsible for providing the technical specifications to SPB

“We’ve always done it that way” – let’s explore how we can improve or update the specifications. Please work with SPB as we ask questions. Our goal is the best contract or purchase order at the best price for your needs

We are all are stewards of the public’s interest – maximum competition and transparency is the goal

Commodity Contract Specifications

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Ensure that specifications provided to SPB are current. Helpful Hint: Review past specifications and past “Questions and Answers” to prevent past issues from re-occurring. Use the past Q & A as a guideline to help make specifications more clear, more inclusive and thus more functional

Commodity Specifications

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Attach the Word file with specifications to the requisition – do not use the OLE function in E1Please do not enter the requisition and email the specifications to a Buyer –

the specifications should travel with the requisition. Include a vendor list

For any requisition except DPA or documented Sole Source; SPB will also attempt to find other vendors using the E1 address book listings

Include any Justification memo for Sole Source or Restrictive needsAll justifications or explanations are part of the file; please write the memo so that it can “stand alone” and gave an outside reviewer (Auditor or citizen) the

complete picture of the agency need.

Commodity Contract or Formal One-Time Purchase Specifications

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Core & Catalog Is the core list appropriately sized? Include all items that will be used on a regular

basis. Agency Subject Matter Expert (SME) research ensures that

multiple vendors may compete Allow adequate time for Question & Answer period

Including SPB review of Q & A prior to posting. Is a Pre-Bid Conference necessary? Is a Bid Bond necessary? Is a Performance Bond necessary? Are there any Federal requirements that should be

addressed up front?Buy America, for example.

Commodity Contract or Formal One-Time Purchase Specifications

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Whenever a formal procurement (ITB for either contract or one-time purchase valued at $25,000 or over) garners fewer than three (3) bids, Materiel and the using agencies must review to determine if the specifications should remain as written (81-154).

Therefore, if the formal procurement was not noted or reviewed as a Sole Source or Restrictive bid (with justification review prior to release), SPB has a duty to ask the agency to explain why the specifications cannot be altered.

Award of Bid

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Sole Source means that there is only one manufacturer and no other distributors OR only one distributor within the geographic location

Include a letter from the manufacturer on company letterhead that states this directly

Include a memo from the agency that has a clear, Stand-Alone explanation as to why the item is needed – not just why it is a Sole Source

A “Stand-Alone” justification means that a lay person without specific knowledge of agency business processes can understand the need. Paint the

whole picture; the file lives on after the procurement!

Sole Source

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Restrictive requests, if valued at $25,000 or over, will be posted to the SPB website, since competition may be attained among multiple distributors

Include a vendor list Include a memo from the agency that has a clear, stand-

alone explanation as to why the request should be restricted to brand/model

A “Stand-Alone” justification means that a lay person without specific knowledge of agency business processes can understand the need. Paint the

whole picture; the file lives on after the procurement!

Restrictive (Brand/Model) Requests

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Weapons come to SPB at any dollar amount Non-CSI furniture comes to SPB at any dollar amount For all other categories, see Attachment I, Restricted

Items, on the current Unrestricted Open Market Purchase Authority FY 2013-2014

Found on the SPB website homepage – an excellent, concise resource for all agency users!

Exception Item Requests

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Emergencies can happen at any time and within any agency. Contact SPB as soon as possible – certainly that day if the emergency occurs during a business day and will cost over $10,000 in non-contract commodity procurement Emergency services have a $50,000 cap, but again, contact SPB for help or

assistance.

Emergency Needs

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When completing the form, estimate usage for the next several months, not just for one purchase order

Commodities – usage on state contracts is estimated and may be added to as needed

Request to Increase Contract Quantity Form is found under “Agency Information” on the SPB website.

Quantity Increase Requests – Existing Commodity Contracts

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SERVICE PROCUREMENT UPDATES

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Connie Heinrichs, BuyerRobert Thompson, Buyer

Michelle Thompson, Buyer Pete Kroll, Buyer

Nancy Storant, BuyerKristi Kling, Buyer

Karen DeVries, Staff AssistantLydia Daniel, Staff Assistant

Rita Kucera, Supervisor

Brenda Pape, State Procurement Manager

Services and IT Team

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Services – most service contracts are at a fixed dollar value. Releasing a PO in error, cancelling or revising the PO, does not add quantity back into the contract. Please explain on the form why quantity needs to be added, if for a service contract!

Request to Increase Contract Quantity Form is found under “Agency Information” on the SPB website

Quantity Increase Requests – Existing Service Contracts

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RFP Boilerplate template changes – Order of Precedence, only one (1) original of RFP response is required, Blind Vendor preference language for Vending Services, Terms and Conditions in new format and Glossary of Terms update.

Posted on SPB website Preference –RFP Boilerplate updated to include

language from 73-107 to allow a Resident disabled veteran or a business located within a designated enterprise zone to claim preference if all other factors are equal, based on documentation provided

New in Service Procurement

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Work backward from the desired start date of the contract

SPB requires a minimum of 75 business days to review and post an RFP from date of requisition receipt

Bid process – allow for all contingencies keeping in mind the longer the time, the better the RFP response, RFP pricing and less likelihood of error

Please ensure that all agency internal stakeholders have reviewed the planned procurement project and given their input before submitting requisition to SPB

Planning Service Procurement Projects

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Cost-Only RFP’s – example - recycling, snow removal are typically less complex.

Complex RFPs include highly technical projects, data system and software development, and human services and are evaluated on more factors than just cost

Rule of thumb – the longer it takes to write or review an RFP, the more complex it may be – consider that bidders also need time to develop a

thoughtful, cost-effective and complete response to the RFP.

A more in-depth presentation on RFP planning and evaluation is next on the Agenda

What Makes an RFP Simple or Complex?

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Request for Proposal Planning and Evaluation

Nebraska State Purchasing Bureau

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CompetitionQualityLower PricingFlexibility in Approach

  Better Understanding

Detailed RequirementsIdentifies NeedsFosters Better Understanding Of Needs

ClarityCommunicate Agency RequirementsEnsures All Bidders Are Provided Same Information

  

What Does the RFP Process Promote?

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Standardizes Evaluation Makes Evaluation Process Easier

  Reduces Bias

Pre-defined Evaluation Criteria Written Evaluations Withstands Public Scrutiny Must Be Fair, Open and Transparent

Improves Quality of Request for Proposal Responses Better, More Complete Information Provided By Bidders

  Reduces Risk

Evaluate Bidders Organization (Corporate Overview) Evaluate Bidders Technical Approach (Technical Response) Evaluate Costs (Cost Proposal)

 

What Does the RFP Process Promote? (Continued)

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SPB is now working a minimum of six (6) months out on service contract renewals.

However, if a contract is out of renewal options, be prepared to begin planning the procurement calendar a minimum of nine (9) to twelve (12) months prior to expiration.

Complex projects require a total time frame that takes into consideration Agency research and development of RFP

Pre-Release review by SPB and collaboration with agencyBid Process

Evaluation PeriodPre-Contract Finalization

General Planning Guidelines

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The drafts of the RFP, Cost Sheet(s) and Evaluation Criteria arrive in State Purchasing attached to the requisition

Ensure during RFP review that the Cost Sheets are tied to the Deliverables within the Technical section

Required by statute Ensure that the Evaluation Criteria are aligned with the

requirements of the Corporate and Technical section Agencies have the ability to bid RFP’s on their own

using SPB processes – pre-review of documents by SPB required prior to posting – 7-10 business days

*More on Evaluation Criteria later in the presentation!

General Planning Guidelines (Continued)

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Adequate Resources and Appropriate Amount of Time

Formal Definition of Tasks Understanding of the Requirements Time and Budget Active Support and Involvement From

Stakeholders, Including Legal, IT If Applicable

Planning Considerations

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Standardized Documents and Checklists Knowledge of Major Risks and Problems Gathering Necessary Approvals From

Management and Other Sources

There is a lot of work to do before the bidding process begins!

Planning Considerations (Continued)

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Question and Answer period –minimum 15 business days from release to last day for vendor to submit questions; minimum 10 days for State to respond (includes SPB review prior to posting)

Second round of Q & A requires additional time Evaluation Period – minimum of 21 days Oral Demonstrations –minimum of 7 days to

request after initial scoring is received and verified by SPB

Please allow sufficient notice for bidders, who may be out-of-state

RFP Timeline

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Information Regarding the Agency and Specific Program For Which Services Are Being Procured

Program Narrative What is the agency seeking to procure? What is the problem the agency is trying to solve? What is the objective? Major components of services sought and desired outcome Service elements and service delivery, setting specific aspects of the

service requested and those items the agency wants the bidder to address Desired Contract Outcomes, including quantifiable objectives Bidder and Bidder Staff Data, including expertise of both the firm and its

personnel in delivery of the service being requested, and available resources

What To Include in the RFP

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Identify Milestones (Deliverables) Bidder must provide cost for each deliverable Payments must be tied to deliverables

Identify Monitoring Points Monitor progress and acceptability of the work will be

evaluated and corrective action taken

What To Include in the RFP (Continued)

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Allow a Minimum of 75 Business Days From Requisition Receipt to RFP Release

Pre-Release Meetings with SPB Release of Request for Proposal Question/Answer Period (Possibly Two Rounds) Pre-Proposal Meeting, if applicable Proposal Opening

The RFP Process

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Evaluation Process Contract Finalization

Finalization of Terms and Conditions Secretary of State Registration/Letter of Good Standing PFC Address Book Registration Performance Bond COI Proposed contractor may not begin providing services until the

contract is signed

Contract Management Contract Monitoring for progress and acceptability, may include

corrective action

The RFP Process (Continued)

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Exceptions to standard boilerplate terms and conditions or a separate Licensing Agreement is part of the RFP response, trigger a Legal review

Any negotiation with vendor by SPB must occur prior to award The State cannot agree to terms that are in

conflict with the Nebraska State Constitution or statutes (for example, Limitation of Liability)

Legal Review Pre-Award

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$15 Million and over contract value requires Proof of Need analysis completed by the Agency after the bid opening, concurrent with award recommendation and prior to contract award.

$15 million limit includes estimated dollar value of all possible renewal periodsBurden of proof is on the Agency, not SPB. SPB reviews to ensure all

elements of the analysis are included.

Proof of Need

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Helps clarify the agency’s desired end result The RFP must be evaluated on the stated

technical requirementsRFPs must be evaluated on the written proposal only; not assumptions or

presumptions Helps the bidder understand what is needed to

prepare the best possible response Ultimately, this saves the state time and money

Why is Evaluation Criteria Important?

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Aid in revealing the best solution and project approach

Encourage competition by fostering fairness Set thresholds for quality and responsibility Must be tied to the RFP requirements

RFP Evaluation Criteria Best Practices

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What does a successful outcome for the RFP look like?

What contractual standards are required around services and/or delivery?

What information do the bidders need to know? What information is needed from the bidder? To assess proposals, what are the most important

elements?

Agency Analysis for Developing RFP Criteria

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The RFP scope should clearly outline or state the Agency needs. Bidders should not have to guess what those needs are. Clearly defined needs and goals lead to better responses.

Agency Business Processes – What Is Important to You?

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Evaluation Criteria must be linked to the RFP narrative. The creation of good, thoughtful RFP Criteria are part of the initial process of developing the RFP.

Bottom Line: Evaluation Criteria Are Not an Afterthought

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A single point of contact (Project Leader) who does not score but responds to team member questions

Project Leader holds an initial meeting of the Evaluation Team to explain the evaluation process, provide instructions and the evaluation schedule

SPB is willing to assist with the initial meeting Project Leader is responsible for checking and verifying

all scoring documents prior to submission to SPB Evaluation Committee members must sign the

Declaration Concerning Conflict of Interest and Confidential Information form

Evaluation Team Roles and Responsibilities

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Evaluation Team understands the process Do individual evaluators understand their roles and

responsibilities within the process? Evaluators score RFPs independently, not

collaboratively RFPs are scored individually not comparatively Evaluators may not make assumptions, but score

on solution proposed within the RFP response Cost Evaluation is scored by one (1) evaluator only

(not all evaluators) and verified by Project Leader

Evaluation Team Roles and Responsibilities (Continued)

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Each RFP is a unique experience. Other phases of the process may include:Oral Interviews/DemonstrationsBest and Final Offer (BAFO)Reference Checks

For more information on these phases, please see the SPB Website to download the Request for Proposal

Evaluation Scoring Manual

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New SPB WebsiteNebraska State Purchasing Bureau

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Next Up:

An exclusive look at the new and improved State Purchasing Bureau website

http://das.nebraska.gov/materiel-2013/purchasing-land.html

SPB Website Update

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Report – Open Contract Lines

Nebraska State Purchasing Bureau

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Purchasing – Agencies -> Inquires & Reports -> Purchasing Reports -> Contract Reports -> Closed Contracts (Report:R571024) -> NIS0002 (version) Closed Service Contract Lines

To View Open Service Contract Lines

Click Select

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Choose Data Selection and Click Submit

Data Selection prior to changes shows the following:

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Choose the Row with Status Code equal to 999 and Click “Delete”

To Add Criteria to your Data Selection:Click on the Left Operand Down Arrow -> Choose “Business Unit”Click on the Comparison Down Arrow -> Choose “is equal to”Click on the Right Operand Down Arrow -> Choose “Literal”

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Choose from Single Value, Range of Values, or List of Values and Fill in the Blank(s)

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The Order Type may include O4, OC and ZC if desired.

Data Selection shows the options chosen to run the Report

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Click OK Click OK Click Close View Job Status Click on Row -> View PDF or View CSV Open the Report in pdf to view

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OR Open the Report in CSV (Excel) to view/sort/manipulate – The title is changed to “Open Contract Lines” on this report